FHFA Foreclosure Report Shows Best Numbers Since 2008

The FHFA’s 4th quarter 2012 Foreclosure Prevention Report, also known as the Federal Property Manager’s Report, said foreclosure starts at Fannie Mae and Freddie Mac in the 4th quarter fell to 135,000 loans, the lowest level since the 3rd quarter of 2008.

According to the report, in the 4th quarter 2012, the GSEs prevented 130,331 foreclosures by approving 97,689 modifications, new repayment plans and principle forbearance plans. The GSEs also completed 28,298 short sales and 4,344 deeds-in-lieu deals.

Forty-six percent of troubled borrowers who received loan modifications in the 4th quarter had their monthly payments reduced by more than 30%. More than one-third of 4th quarter 2012 loan modifications included principal forbearance, the FHFA said.

Fannie Mae and Freddie Mac completed more than 540,000 foreclosure prevention actions during 2012. This brings the total foreclosure prevention actions to nearly 2.7 millionsince the start of conservatorship in 2008, including more than 1.3 millionpermanent loan modifications, the FHFA said.

The number of Fannie Mae and Freddie Mac delinquent borrowers declined 14% in 2012 as mortgage delinquencies dropped in every state except New Jersey and New York, the agency said.